State Department Awards $307M Design-Build Contract for Guatemala Embassy Compound
Contract Overview
Contract Amount: $307,160,339 ($307.2M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2017-09-30
End Date: 2022-08-23
Contract Duration: 1,788 days
Daily Burn Rate: $171.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD CONSTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC) IN GUATEMALA CITY, GUATEMALAIGF::OT::IGF
Plain-Language Summary
Department of State obligated $307.2 million to BL HARBERT INTERNATIONAL LLC for work described as: DESIGN-BUILD CONSTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC) IN GUATEMALA CITY, GUATEMALAIGF::OT::IGF Key points: 1. The contract value of $307.16 million is substantial for a single embassy construction project. 2. BL Harbert International LLC, the awardee, is a significant player in international construction. 3. The project carries inherent risks associated with overseas construction, including security and logistical challenges. 4. The construction sector, particularly for large government facilities, is competitive but often involves specialized firms.
Value Assessment
Rating: good
The $307.16 million award appears within a reasonable range for a large-scale embassy construction project of this nature, considering the complexity and location. Benchmarking against similar overseas diplomatic facility constructions would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified contractors vie for the award.
Taxpayer Impact: The competitive bidding process likely ensured a fair price, maximizing taxpayer value for this significant infrastructure investment.
Public Impact
Enhances U.S. diplomatic presence and security in Guatemala. Supports local employment and economic activity during construction. Represents a long-term investment in international relations and infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to unforeseen site conditions or material price fluctuations.
- Security risks associated with operating in a foreign country.
- Logistical challenges in procuring and transporting materials to the site.
Positive Signals
- Awarded under full and open competition, indicating competitive pricing.
- Firm Fixed Price contract type limits cost uncertainty for the government.
- Experienced contractor selected for a complex international project.
Sector Analysis
The construction sector, particularly for large government and institutional buildings, requires specialized expertise and significant capital. Projects of this scale often involve international firms with experience in complex overseas environments.
Small Business Impact
While the primary award went to a large firm, the project likely created subcontracting opportunities for small businesses in areas such as materials supply, specialized labor, and local services.
Oversight & Accountability
The Department of State's oversight mechanisms are crucial for managing the risks and ensuring the successful completion of this high-value overseas construction project, including monitoring progress, quality, and adherence to budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Geopolitical instability in the region.
- Currency exchange rate fluctuations impacting material costs.
- Potential for labor disputes or shortages.
- Unforeseen geological or environmental conditions at the site.
- Supply chain disruptions affecting material delivery.
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $307.2 million to BL HARBERT INTERNATIONAL LLC. DESIGN-BUILD CONSTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC) IN GUATEMALA CITY, GUATEMALAIGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is BL HARBERT INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $307.2 million.
What is the period of performance?
Start: 2017-09-30. End: 2022-08-23.
What are the key performance indicators (KPIs) used to measure the success of this construction project beyond cost and schedule?
Key performance indicators would likely include adherence to design specifications, quality of materials and workmanship, safety record on site, environmental compliance, and stakeholder satisfaction (e.g., U.S. Embassy staff). Regular progress reports and site inspections by government representatives are essential for monitoring these KPIs and ensuring the project meets its objectives.
How are potential security threats in Guatemala being mitigated during the construction phase?
Mitigation strategies likely involve robust physical security measures at the construction site, background checks for all personnel, coordination with local law enforcement and security agencies, and potentially the use of private security contractors. The contract may also include specific clauses addressing security protocols and incident response plans.
What mechanisms are in place to ensure the long-term durability and maintainability of the new embassy compound?
The contract likely specifies stringent quality control and assurance measures throughout the construction process, including material testing and inspections. Furthermore, provisions for warranties, as-built documentation, and potentially a post-occupancy evaluation period would ensure the long-term durability and ease of maintenance for the facility.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SAQMMA17R0096
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 820 SHADES CREEK PKWY STE 3000, BIRMINGHAM, AL, 35209
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $307,160,345
Exercised Options: $307,160,345
Current Obligation: $307,160,339
Subaward Activity
Number of Subawards: 243
Total Subaward Amount: $53,351,992
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-30
Current End Date: 2022-08-23
Potential End Date: 2022-08-23 00:00:00
Last Modified: 2025-02-20
More Contracts from BL Harbert International LLC
- TAS::19 0535 000::TAS NEW Embassey Compound and Housing, Islamabad, Pakistan — $871.5M (Department of State)
- Base Award for Construction Manager AS Constructor Clin-001 for Design-Phase Services for Hanoi NEC — $815.9M (Department of State)
- Beirut, Lebanon NEW Embassy Constructionigf::cl::igf — $731.6M (Department of State)
- Construction Services for the NEW Embassy Compound in NEW Delhi, India — $685.1M (Department of State)
- Construction Services for NEW Emabssy Compound in London, England. Igf::ot::igf — $636.0M (Department of State)
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)